China's plan to present its national cryptocurrency, DCEP (digital currency / electronic payment), is coming to fruition. Currently, citizens of three cities can create a DCEP wallet in their bank's mobile application in the country's pilot project.
The Decrypt website asks: why a digital yuan in a country that already prioritizes digital payments through applications like Alipay and WeChat?
DCEP will act as a currency and electronic payment, which trades cannot refuse. It uses the technology of autonomous contracts, encryption and tracking to avoid money laundering and tax evasion.
As it is a digital currency issued by the central bank (CBDC), it will be more in line with monetary policies than other payment options that are independent of the government.
It is possible that citizens do not feel much of a difference when migrating to the digital yuan, as they always make payments with mobile applications and do not use as much credit card due to high transaction fees.
Forkast, a website about emerging technologies in the commercial, economic and political sectors, spoke with some Chinese citizens:
"In China, online payments are a way of life after Alipay and WeChat Pay dethrone the use of cash and credit cards," said Lim Wei Ming, manager of the Shangri-La hotel chain in Shenzhen. "Chinese citizens will support, not detest [DCEP]."
Da Lin, who owns a video game store in Shenzen, says he has not used cash in the past three years. "For businesses like ours, I prefer not to receive cash because it is simpler," he told Forkast. "Now, almost nobody carries money."
He added: “[DCEP] is neither good nor bad for us because, now, WeChat, Alipay and other payment methods basically cover all aspects of our lives. If the payment method is the same, the digital yuan will be just another payment method ”.
Zhiguo He, professor of finance at the University of Chicago, told Forkast that “what is the deterrent to not using [DCEP]? Digital transactions have entered everyone's daily lives and it is quite natural for people to start using them as long as they have banking applications ”.
Regarding privacy, something of concern because China is considered an extremely restricted and imposing country, some believe that the country will have greater supervisory power, since a CBDC could provide digital records and traceability, something impossible with the use of physical money.
"Outside of China, I agree that the issue of privacy is the focus of the debate," said He. However, "for Chinese, [privacy has a meaning] totally different than for the West".
Users are already used to tracking their data on online payment platforms, according to Decrypt. Companies already share user data with the government.
"There is nothing secretive when you use a [online] payment platform, as they do analysis to track your behavior," says Lim. "A simple check on a government website already means you have been tracked."
Chinese citizens say it is up to the government to restrict and balance the degree of exposure of the data.
Although there is no specific date for the official launch of the DCEP, the coin can still be used at the 2022 Winter Olympics in Beijing.
By Daniela Pereira do Nascimento
https://www.moneytimes.com.br/fast/o-que-os-cidadaos-chineses-realmente-pensam-sobre-uma-criptomoeda-nacional/
15/06/2020 - 11:38
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